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Stimulus Package is Latest Battleground in War between Ron Paul and Big Government
- Text size
Barbara Minton
Natural News
February 12, 2009
A battle is on in the world of economics, a battle that can be symbolized as David vs. Goliath. It is the intellectual and tactical battle between big government and small government. Goliath is big government whether it is headed by George Bush or Barack Obama, the new president who promised change but is promoting the business of big government as usual. David is small government, currently being represented by Ron Paul, the Constitutionalist Congressman from the House Financial Services Committee, who thinks big government is the problem, not the solution. The most recent battleground is the economic stimulus package newly emerged from the shoot of big government.
The basic premise of Goliath is that to keep the current economic malaise from rivaling or exceeding the scope of the Great Depression, the government must stimulate the economy with massive amounts of money so consumers can get loans to continue their binge of accumulating material goods. Even though too many people already have a house they can’t afford, a new car, bulging closets, spoiled children, and debt up to their eyeballs, Goliath sees the current crisis as the result of the drying up of credit and the refusal of lenders to lend. This vision is like telling a man who has just finished a seven course dinner that the only way around his indigestion is to eat another meal.
David thinks that in order to keep the current economic crisis from turning into a prolonged depression as was witnessed in 1929, the government must retrench and let the invisible hand of the market cleanse away the debt overhang before any real economic growth can again take place and the economy can right itself. David thinks the man who just finished the seven course dinner should take a digestive enzyme, lie down and sleep it off.
Understanding the source of the crisis is the first step to solving it
The small government proponents believe the way to start improving the situation is to first understand how we got into such a mess. They see the cause of the current distress as the result of government policies and central planning that created the housing bubble that is now going bust.
About a decade ago, the government made expanded homeownership and affordable housing a public goal. Through Fannie Mae, Freddie Mac, and the secondary mortgage market, the government provided the incentive for low down-payment, widely available mortgage products. It discouraged market-proven lending standards so successfully used in the past. The Federal Reserve, kept interest rates artificially low, adding even more fuel to this fire. Many sectors related to the housing bubble flourished because of this environment of easy credit, and many people were put into homes they otherwise could never have afforded.
It was a festive time for a lot of people. The government-spurred increased demand for housing sent prices soaring until many markets became unaffordable, necessitating even more creative mortgages and leveraged ways to own a home. Risky investment vehicles such as mortgaged-backed securities, derivatives, and credit default swaps added another financial dimension to the bubble. Then, when the last person who wanted a house finally got one, the lights went out on the party.
- A d v e r t i s e m e n t
Clearly the situation now is unpleasant for many people. In response, the proponents of big government have taken their cue from the disease establishment. They want to treat the symptoms of the economic bust without regard to what caused the bubble in the first place.
For small government proponents, just as the best cure for having eaten too much is not to eat for awhile, the best cure for a massive debt buildup is not to borrow for awhile. This includes the government as well as the individual.
Big government takes its cue from big medicine and wants to treat symptoms
In the big government camp, there is a lot of scurrying around trying to figure out what to do with the huge debt ball that threatens to roll on top of the economy and squash it. Some advocate the creation of a "bad bank" to buy up all the troubled debt at inflated prices. Others want an end to the mark to market accounting rule under which the books of financial institutions are required to show the true value of their assets on a daily basis. An end to mark to market accounting would allow banks and debt institutions to carry loans on their books as though they were still worth what they were before the borrowers stopped making their payments. The thinking is that if the old debt can be dressed up in some kind of way that makes it look better, it will be easier to create new debt.
The small government camp thinks that it was government intervention and manipulation that caused the housing market to become divorced from sound money policy in the first place. They advocate a return to free market principals, sound money policy, assessment of the principles of risk and reward, and supply and demand, without government or political intervention. For them, it is the manipulative rules and regulations of government attempting to dictate social and economic behavior that are the root causes of the current distortions and bad investments. Bailing out banks, continuing failed Fed policies and strapping the taxpayer with toxic debt will only worsen the pain and punish the innocent.
For Ron Paul, curing a recession means allowing it to take its course by allowing the market value of debt to reflect its true value. This would allow lenders to lose money if the borrowers cannot make their payments, a fundamental principal of free markets. If loans cannot be paid, they will eventually be written off the books at a true value of zero. Institutions that made bad loans to the point where their financial futures are compromised will disappear. The investors they represented will lose their money and realize they made bad investments. Homeowners who bought houses that were overvalued can either pay off their inflated mortgages or they can walk away from their houses. Either way they will learn from their mistakes. As a result of the economic crisis, people will realize the importance of saving money again. Eventually equilibrium will be reached and the economy will be poised to recover, spurred on by a mounting national savings rate.
If Congress wants to be helpful and stimulate demand, it should cut taxes, according to Congressman Paul. Ideally, the income tax should be completely repealed, and the IRS should be dismantled giving everyone a reason to celebrate. Unconstitutional programs and departments should be discontinued, and the wasteful governmental encroachment of the people’s liberty and money should be ended, starting with its massive overseas empire. When the U.S. gives up its desire to rule the world, money dedicated to that purpose could be brought home and would be more than enough to provide funding for the expenses of a small government. Congress should abolish the Federal Reserve and take back its responsibilities to ensure sound money, safe from the manipulations of powerful banking interests.
Free economies have always gone in cycles, following the grand design of nature. When an economy is ready to expand it does so, requiring no government stimulus to get it going. And when it is time for an economy to contract, it will do so no matter how much stimulus is thrown at it.
The stimulus package can only prolong the economic pain
The current stimulus package creates another $6,500 of additional debt burden for every American man, woman and child. That is $26,000 for a family of four. This burden is on top of the $37,000 already owed by every man, woman and child, equating to $148,000 for a family of four. This makes a total of $174,000 extra that the family of four will have to come up with, an amount that is the equivalent of buying another house for many families. This is at a time when people are struggling to pay off their already gargantuan debt for houses, cars and credit cards.
Big government claims the stimulus package is designed to put out the economic fire that threatens to destroy the U.S. economy. In the words of Congressman Paul, big government’s piling of all this extra debt onto its citizen’s backs is simply throwing kerosene on the fire. It will only serve to deepen and lengthen the recession until it officially is declared a depression. So even if Goliath wins the stimulus battle, David will be proven right in time. Unfortunately a lot of destruction will have to go on in the meantime.
Sources:
Ron Paul, Cures for Our Economic Disease, Texas Straight Talk.
Jack Crooks, An epic battle being waged, Money and Markets.
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February 12th, 2009 at 12:10 pm
I’m not sure why a strict Constitutionalist would presume to legitimate Congress with his presence.
At this point in world history, is anyone there to uphold secular law, as we know it?
Isn’t Paul the token member of a reactionary minority? When faced with human rights violations, we rally behind figurehead Paul, the political equivalent of a headpin in a bowling alley.
Graft Reply:
February 13th, 2009 at 5:46 am
Also, we should get our local sheriff to join the fight against tyranny, the government have little to none authority over them.
February 12th, 2009 at 12:11 pm
I look at all the sleepwalking citizens of America and then I look at how slutty women operate……nice guy’s always are to be taken advantaged of and used and abused……in the end the slutty woman lays down with dogs and gets up with fleas……the American Citizen is the nice guy being used and the International Banker/ Military Industrial Complex/ Banker/ lobbyist/etc.etc.etc…..are the slutty bitches…………..need I say more……are you gonna die on your knee’s like a bitch or curl up in a ball like a bitch OR are you gonna die standing like a man…..only you can answer that to yourselves………..
February 12th, 2009 at 12:12 pm
I look at all the sleepwalking citizens of America and then I look at how slutty women operate……nice guy’s always are to be taken advantaged of and used and abused……in the end the slutty woman lays down with dogs and gets up with fleas……the American Citizen is the nice guy being used and the International Banker/ Industrial Complex/ Banker/ lobbyist/etc.etc.etc…..are the slutty bitches…………..need I say more……are you gonna die on your knee’s like a bitch or curl up in a ball like a bitch OR are you gonna die standing like a man…..only you can answer that to yourselves………..
Margarette Reply:
February 13th, 2009 at 6:18 pm
Give it up Charles.. your name is charles and you are a factory worker at a place that makes trailer hitches. You make 10.50 per hour and have no bennefits. I met you at the local western bar and you told me you were the owner of the company! Luckily as I’ve had 2 kids with you and found out the real truth.. I work at a bank and can cover our kid’s healthcare. You should be ashamed posting the things you do. I really think you are at risk for being in need of serious mental care. But you can rest assured that it wont be on my dime. you fat bastard!
February 12th, 2009 at 12:13 pm
There are two cures for the current crisis. Employ the strategy outlined above or something very similar, a high velocity injection of copper jacketed lead to the head of the beast and all that support it.
February 12th, 2009 at 12:14 pm
where does infowars get their images from for the headline picture thing on the homepage…that ron paul pic with the dollars in the background is AWESOME but i need it larger for my desktop…
February 12th, 2009 at 12:37 pm
Check this: Jerusalem Post: ‘Our World: Obama’s new world order and Israel’
http://www.jpost.com/servlet/S.....2FShowFull
February 12th, 2009 at 12:38 pm
Great Article!!!
Good analogy to help us see the big picture.
Gotta hand it to Ron Paul for not giving up, he goes after Bernanke every time.
In all discussions with anyone..Ron Paul uses polite manners to get his point across.
Even when he has Presidential candidates throwing mud..he just wipes it off and continues with his agenda.
I am waiting for Bernanke to bust out one day and attack Ron Paul on economy beliefs.
But Bernanke has a good relationship with his medication doctor.
So far, he has acted respectful towards RP.
But RP is the only person up there who knows enough to spank Bernanke.
You can be the smartest person in the world, but if you are following the path of greed.
Then you will tell lies and have a look like Bernanke has in his face..smirk.
Smirk=someone who thinks they are pulling the wool over your eyes.
February 12th, 2009 at 12:44 pm
I vote for Ron Paul to become President of the real United states of America once we regain control from the NWO.
Ron Paul stands for more truth and freedom then the whole federal governmnet combined.
I look forward to the day when I can shake his hand and really be proud to be an american because it is not happening nor does it happen with the current governmental body.
February 12th, 2009 at 12:54 pm
We need more people like Ron Paul in our government. There are politicians we can feel comfortable standing behind. Leaders that see our concerns about the Fed, NAU, NWO……..
They can help us gain back our country. Ron Paul is all about restoring the law of the land by what we all know as The Constitution of the United States, do you remember this document? “They” don’t. It’s time somebody reminded them! Protests are great but we need a solution that works from the inside out. If we change the rules of the game we stand a REAL change at achieving the ultimate goal, our FREEDOM! I have been looking into the Constitution Party and it appears that they are moving in the right direction by addressing many of my personal concerns. They address the New World Order openly, they are completely against the NAU and NAFTA. They want to abolish the FED!
The language they use is direct and to the point. They will need our help because what they want to fight doesn’t stand a chance without help from people just like you and I.
So many people not aware of many if not all of these issues. We need to warn people. A LOT OF PEOPLE. There is a site called warnthepeople.org that is really stirring things up. It’s a simple concept really. The sheeple are prompted to watch a series of videos that gets them up to speed. I don’t have to argue issues with people that I approach. I just have to tell them to go to this site, watch ALL the videos including the ones on the videos by topic section. I will provide the link at the end of this message. It has helped me out tremendously. I have these little business card size pieces of paper with the web address on it. Who knows if complete strangers ever go. The people that I know s\do though and they are speechless. This site also has a link to the Constitution Party Website. Check it out. I would love to hear some feedback and what you guys think.
Bottom line is. My life has never been the same since I learned of all that is really going on out there. I know with everything I am that the only way we are going to make a difference is by standing united. We ALL need to get very busy warning people, backing politicians with the same convictions as ours, protesting to show displays of intolerance to the elite’s actions, thinking about solutions constantly, making phone calls, holding meetings, basically whatever it takes. With this frame of mind, we can achieve great things and gain the freedom we so foolishly gave away!
I hope you will decide to stand with me today. Sometimes it’s a lonely fight. We must remain focused, we must remain strong!
Thank you for your time
http://WWW.WARNTHEPEOPLE.ORG
February 12th, 2009 at 12:54 pm
You’d be shaking hands with the devil’s minions,Ron Paul is not what he portrays himself to be. KNOW YOUR ENEMIES BEFORE THEY DEVOUR YOU.
Swayze Reply:
February 12th, 2009 at 3:52 pm
More punk talk from Ditto about Ron Paul. Are you jealous because you can accomplish nothing and he can?
Wake up Reply:
February 12th, 2009 at 9:47 pm
http://www.youtube.com/watch?v=_x6inINzThw
Ditto Reply:
February 12th, 2009 at 10:03 pm
What the fuck has he accomplished??????????????????? NOTHING!!!!!!
Swayze Reply:
February 12th, 2009 at 11:48 pm
then you two are even
February 12th, 2009 at 12:55 pm
We need more people like Ron Paul in our government. There are politicians we can feel comfortable standing behind. Leaders that see our concerns about the Fed, NAU, NWO……..
They can help us gain back our country. Ron Paul is all about restoring the law of the land by what we all know as The Constitution of the United States, do you remember this document? “They” don’t. It’s time somebody reminded them! Protests are great but we need a solution that works from the inside out. If we change the rules of the game we stand a REAL change at achieving the ultimate goal, our FREEDOM! I have been looking into the Constitution Party and it appears that they are moving in the right direction by addressing many of my personal concerns. They address the New World Order openly, they are completely against the NAU and NAFTA. They want to abolish the FED!
The language they use is direct and to the point. They will need our help because what they want to fight doesn’t stand a chance without help from people just like you and I.
So many people not aware of many if not all of these issues. We need to warn people. A LOT OF PEOPLE. There is a site called warnthepeople.org that is really stirring things up. It’s a simple concept really. The sheeple are prompted to watch a series of videos that gets them up to speed. I don’t have to argue issues with people that I approach. I just have to tell them to go to this site, watch ALL the videos including the ones on the videos by topic section. I will provide the link at the end of this message. It has helped me out tremendously. I have these little business card size pieces of paper with the web address on it. Who knows if complete strangers ever go. The people that I know s\do though and they are speechless. This site also has a link to the Constitution Party Website. Check it out. I would love to hear some feedback and what you guys think.
Bottom line is. My life has never been the same since I learned of all that is really going on out there. I know with everything I am that the only way we are going to make a difference is by standing united. We ALL need to get very busy warning people, backing politicians with the same convictions as ours, protesting to show displays of intolerance to the elite’s actions, thinking about solutions constantly, making phone calls, holding meetings, basically whatever it takes. With this frame of mind, we can achieve great things and gain the freedom we so foolishly gave away!
I hope you will decide to stand with me today. Sometimes it’s a lonely fight. We must remain focused, we must remain strong!
Thank you for your time
http://WWW.WARNTHEPEOPLE.ORG
February 12th, 2009 at 1:25 pm
Here we go again. YOU CAN’T ‘STIMULATE/CUT TAXES/CUT INTEREST-RATES’ ON A CONSUMER BASE THAT’S ALREADY FLOODED!!!!!!!!!!! YOU HAVE TO CHANGE THE TARIFF POLICY & GET RID OF THESE DAMN IMPORTS. I’M TIRED OF INFOWARS BRINGING IT UP OVER & OVER & OVER AGAIN!!!!!!!!!!!!!
February 12th, 2009 at 1:52 pm
Most Americans have a Congressman from AIPAC, a Senator from AIPAC, or both!
February 12th, 2009 at 3:29 pm
INFOWARS=BEAST
February 12th, 2009 at 4:31 pm
The 2009 GRASSROOTS Infowars Money Bomb is LIVE!! Feb 12-22. GOAL: A small $5 donation from ALL 2 million plus listeners and supporters of the Infowar will inject $10 million to the cause for TRUTH, FREEDOM, JUSTICE and LIBERTY! The enemy has BILLIONS at their disposal so we need to push back en masse!! Please check out this video and Liberate Your Lincolns Today!
http://www.youtube.com/watch?v=Uns4n_Rd1do
February 12th, 2009 at 4:44 pm
ron the backstabber paul can shove it!
He turns his back on the truth and lies about there being no conspiracy in 9/11. What a piece of crap.
He supports a new investigation my ass. The investigation has been done by the people, we have found the truth and that doesn’t cut it for ronny.
JewAgainstZionism Reply:
February 12th, 2009 at 6:45 pm
The minute he opens his mouth about that is the last time he is elected. There’s a reason why he’s been going strong for 30 years. He knows how to work within the system.
Look at all of the people who spoke up about 9/11. They never got re-elected.
February 12th, 2009 at 9:12 pm
Please read the Bible people! If you know how the story will end they can’t beat you with fear tactics.
Plus as smart and well researched as Alex Jones, Ron Paul and Tex Marrs are, do you think it is a coincidence that they are all Christians… Think about it.
http://www.youtube.com/watch?v=CG3Z8bYlvms
Wake up Reply:
February 12th, 2009 at 9:43 pm
You do understand that the book of Revelation is just a polemic against Nero and the Roman Empire, correct? Don’t fall for one side of the NWO’s propaganda. They want people to believe they are living in an apocalypse. This way, people will accept war and famine as part of “God’s plan.” In reality it’s the NWO who is playing God with all of us.
February 12th, 2009 at 10:54 pm
Hey, this is really great what’s happening.
It used to be you could not slack off and get much in this world.
But now that the doers are being prosecuted to death and will never be allowed to raise themselves through hard work, we can all become slackers.
Man, I always really wanted something for nothing and now we can all have it because the governement will provide it to us all.
They just robbed my 401K that I spent over 20 years building, dollar by dollar and pinching pennies, but it’s Ok I am going into retirement broke because we all have social security and socialized medicine. I can’t wait to meet all the nose pickers as I wait in line for elderly housing to take care of us all.
Now I know why I worked my ass off with hours and hours of overtime and put it into the bank. It’s so we can all become slackers and nose pickers looking for the redistributed money stolen from people like me and given to the many nose pickers out there.
My next question is will they eat me when I am dead and do I have any guarantee that I will actually be dead before they start eating?
February 12th, 2009 at 11:04 pm
Buy guns and lots of ammo, because the zombies and Fed have united and it won’t be long before they ring the dinner bell.
February 12th, 2009 at 11:56 pm
so what is with ron paul believing 2 passenger jets could knock down 3 skyscrapers?
over 600 architects and engineers don’t.
February 13th, 2009 at 12:55 am
Think
SALT = MONEY.
Humanity has seen this before. The only difference today is all the articial flavors and colorings they put into the salt to create market diversity. By this time in humanity’s awakening it’s become real obvious just “whom” the terrorists really are, because they are the one’s with the weapons, as the hostages get marched around on the slavery merry-go-round. That and you’ve got to realize they are counting taco flavored salt several times over because it can also used in enchiladas and refried beans, or something like that for lack of better words.
Don’t be fooled it’s really that simple: SALT = MONEY, if the people will allow it.
February 13th, 2009 at 12:48 pm
Infowars should have titled this article, “Custard’s last stand.”
February 13th, 2009 at 7:54 pm
what we really need is to re institute industrial hemp into the american economy through farmers and citizens…. for the people… and not the government…. i am POOR why can i not grow a crop to supply my own clothes/cars/plastics/papers/food/medicine and fun…
February 13th, 2009 at 9:09 pm
Great article. We’re witnessing the final blows against an empire from within. A few more of these big money grabs and America should Awake and Revolt! Hopefully everybody’s not too flouridated and sedated to stand against the tyrannists.
February 16th, 2009 at 9:54 am
Ron Paul is a two-faced snitch